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tv   [untitled]    February 27, 2014 8:30pm-9:01pm PST

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and exhibit their ar facts, march first and second at the old mint and we will get a chance to see that and that concludes my report. >> thank you. >> next israel em, commissioner reports? >> public comment? >> sorry. >> i have exciting news to report back, that the port of san francisco, recently won the california maritime leadership award and the 2013, honorary of merit and also try to play vanna here. and that was with this past week, up in sacramento and it was the california maritime leadership similar syposium and we started off with a commissioner's lunch and the
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director of the governor's office of business development was the keynote speaker and we were joined by representatives from or commissioners from i think every port in the state of california, okay land, stockton, and los angeles, and others, and we had the port staff that came and joined us as well, peter daily and jim, maloney and commissioner adams was there as well and included several members of the iowuu at the commission's lunch which was significant for everyone to break bread together. >> it was the best attended ever and had some really terrific presentations throughout the day. one of the keynote addresses was from leslie breakly the executive director from the america gateways and corridors
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and we had members of the core presenting and right of others and then that evening was when the port of san francisco received our award at a reception and included the members of the state legislature, and many of their staff, so that was exciting and then the port of san francisco, actually gave an award out, as well as being the recipients and given an award to katz who is the founder of the maritime and he is stepping down from that and we were able to honor him on his great work for the ports of california. and so it was wonderful and appreciated that they gave the award to the port of san francisco. any other commissioner's reports? >> commissioner adams? >> i also got to attend that with president katz and i wanted to say that she did an excellent job representing the port of san francisco at the lunch in and also at the
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reception that we were honored at and i also had the opportunity to meet with the new speaker of the california assembly, she is the first openly gay woman speaker of the assembly and we met with her and it is funny that a lot of times you assume that the politicians have been to the port and represents the port of san diego and she has never been to a port before, it is amazing that a lot of times, politicians represent things they know nothing about and have to depend on their staff. so what i did was i invited her to the port of san francisco and she accepted. and she said that they like to come here and do the port of san francisco and do a tour and she was engaged and she says, really i am open as a new speaker of the assembly, because i want to learn more, and i understand that i can only do so much on the state level but to work with the federal level because i am concerned about the ports and transportation in california. and also, told her that we set up a tour for her in the port
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of san diego and so that was good to build the relationships with politicians from the ground floor up. and to also to educate them as we educate ourselves and also spoke from the governor's office and i made mention to him that it is good that the governor went ko china, but i go, how can you go to china you never take labor with you. we have load and unload these ships we know just as much as infrastructure as the people in business and we are the ones that make the ports flow and handling the cargo in and out of the ports, you have to remember that close to a trillion dollars go through the ports and the union is the life blood and the spark plug to make that happen, you not only take business people and burr crats but you take the working class like my union, the iow that understands this and we have been doing this for 78 years and we can understand it and so thank you. >> commissioner did you want to mention your evening at the
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ymca? >> i had an opportunity and i was invited by commissioner brandon and she is a very, very humble lady and she was honored by the bay view, ymca and also her in the new chief of police in officer but it was an honor to go the bay view ymca to see the work that she has done in the community as her life work and she not only talks the talk but walks the walk, but also timothy was also there beside her and he does a lot of work and our units made a donation for the kids and there was a guy there from the golden state warriors and he was from nigeria and his parents were there and i found it good that he along with commissioner brandon and others were honored for the work to the community and these are the people that i consider unsung heroes that don't want any publicity.
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he is actually out there working every day and doing something and enriching the lives of the kids in the bay view and making that area a better area and i want to commend her and thank you for all of her hard work. >> very well deserved honor. >> thank you. >> and i just wanted to say that i am really looking forward to the bay view tomorrow, and it is exciting art project and it is one of many that will be coming to the south east sector of the city and i am just really excited about it and so hopefully everyone can come out. >> commissioner woo ho? i have not been invited to anything in the last couple of weeks that i want to report on. >> but i will keep my comments for further meetings. >> i think that everybody being said i just want to commend commissioner brandon and thank you, and katz for their
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comments. >> and behalf of all of the commissioners we wish cfo forbes a speedy recovery from her serious run in with a horse. hopefully she will mend rapidly. >> that concludes. and next item. >> public comment? >> okay. >> item 7 a... >> actually i am sorry. we have one last item. commissioner adams reminded me as well, that we attended the ceremony which was the first time in the port of a ship asmura and we are invited to do a plaque exchange with them and i want to thank peter daily and others who arranged a really terrific event with the port of san francisco. and the cruise ship the captain and fell in love, all over again with san francisco, and he had not been here in many years, and it was a really wonderful, opportunity to show case our city in the ports and we were glad to have them back in san francisco, or in san francisco, for the first time.
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>> okay. >> item 7 a, informational presentation for a limited request for proposals for a retail space located at pier 33 north on the embarcadero on the foot of bay street which will be issued competitively on a target basis to the small businesses currently working with the san francisco community-based organizations. >> good afternoon, commissioners. susan ren olds, deputy director for real estate. my informational presentation today proposes a pilot program to expand the port's request for proposal or rsp opportunities to local business enterprises. and lbes. and historically, the port retail sites, that have come up for an rfp, have required large capitol injection to bring them
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to a habitable condition and that is a hurtle for most of our lbes. and the port is fortunate to have a retail site that has been renovated and here it is, it is the pier 33 and a half. and it is in a condition that would not require a large capitol injection. to assist the port in helping to identify candidates for this rfp, the port is proposing to out reach to cities community based organization, or cbos, and that are in the business of assisting small businesses to start and grow. the port is proposing a pilot program that would distribute this rfp on a targeted basis through the cbos. the port will require that the respondents to this retail opportunity be clients of within of the city's cbos and continue to reach ongoing
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technical assistance. the cbo, will not have any obligations for the lease other than providing the ongoing technical assistance to their client. the port desires a retail use that serves the water front visitor and neighbor and local workers, locally made foods and goods for sale will be ideal. there are no cooking or venting amendties available in this facility and so the full service restaurant would not be practical here. and this is a warm shell, which means that the facility is improved to the walls and floors, and ready for tenant-funded improvements. and there are two spaces available, and you can see them here. the one on the left is 512 square feet, and that the other adjacent facility is 1430 square feet and these are open
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and i will show you pictures of facilities that can accommodate, actually more than one, 2, or 3, tenants if they would want to partner together to form a collaboration and they could present something similar to what is down stairs and the small kiosks that would sell their goods and services. the responses to the rfp, will be a value weighted by a panel that is formed of community members that are most qualified to help respond to these applicants that will be interested in responding to the rfp. the leases will be for a term of up to 5 years, and at a
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market rate, for retail, which includes a base rent or a percentage of rent which ever is greater, port staff will return to the commission, on april 8, to seek approval for this concept and move forward with issuing the rfp. and these are the community based organizations that we have out reached to so far. and there are others out there, that could be included on this list. and it is not a closed list. and there are many opportunities and many small businesses out there, we are also working with the office of small business and the small business commission that also has candidates that would qualify, and the office of economic and workforce development invest in neighborhoods which does a lot of funding to these
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community-based organizations. and that is my presentation, and i'm available for questions. >> thank you. we have public comment? >> seeing none, commissioners? >> good afternoon, commissioners. i just wanted to thank you. >> please state your name first. >> adria baker and i am a community representative and i wanted to thank you for this opportunity to speak in support of this retail program, targeted at local business enterprises. i want to acknowledge the port for its desire and commitment to create a san francisco water front that embraces and reflects the diversity of our city. and for staff, thoughtful
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approach in involving our cbos that work with small businesses to assist in the out reach for this opportunity. and to provide ongoing financial, and operational technical assistance, which will insure the success of the selected participants, thank you. >> thank you. >> any other public comment? commissioners? >> yeah, i think that it is a great idea. and it is a really nice space and you are not going to need enough of a lot of expenses to get it up and running. and i also think that the reasonably priced and the only, other concern that i would have is where we are going to advertise in order to let all san franciscans know about it? >> our goal is to first out reach to the cbos. because we want this opportunity to be successful.
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and so, we are advertising through the cbos so that their client base would get the technical assistance ongoing technical assistance, so that we have a successful opportunity. >> but we could make it broader if that is your direction. >> i think that you should go both, i mean that it seems like you could say that if somebody had less experience, they should work with the cbo, but if they are qualified as an lbe and have experience, why would we force them to go through a channel that they may or may not need. it seems like, that since you have a panel that could evaluate this, they would be able to evaluate but maybe, we are assuming that, if you go through a cbo it is because you need their help. in some way in terms of the ongoing technical assistance and there may be a qualified lbe that could apply and should be evaluated and i don't see
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why we would close that door. >> so we will include that and we have a network of publications that go out to small business entities and also the public newspapers and so we will include all of those in our distribution. >> and if you do the public newspapers in some of the minority communities, could you also include the ethic language, newspapers, so that they receive it in their language, that would it is not just a chronicle or the san francisco business times which only has a certain readership. >> there are quite a list of ethic newspapers in multiple languages that is within the network. and that we out reach to. so we will make sure that we include all of them. >> yeah, and i would suggest that even renee consider putting out a press release and sending it out so that the people are aware if they are not applicants that this is, you know, we should use it and
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trying to create the good will in the community and the good will should know about it. >> thank you. >> i assume that the bathrooms are ada... >> yeah. this facility, was recently renovated and we had a tenant that did things that were not up to code. they went in and renovated and our project manager was wendy proctor and made sure that everything was both accessible and up to code. >> thank you. >> i just have one question, you mentioned it but, you say that the current rent at $250 a month that is the current market that we have for that space. >> for that facility, yes. and then the base rent would increase by 3 percent annually,
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and so, it would be priced at the base rent of 250 a square foot, or 7 percent of gross retail sales, whichever is greater. and that is our standard for retail spaces. >> one last question. and then i will yield the floor. >> who previously occupied this space? >> he was an architect that it was not a retail space. so, there is upstairs offices in this facility, which will remain offices. and then, down stairs we decided because of its location that a retail space would be more beneficial to the neighborhood and the port. >> one last, what if a non-profit approached us knowing what the rent was and everything? >> well, we have designated it as retail. and if they were a non-profit that had retail services, then they certainly could be
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considered. >> yeah, like... did you get the answer that you wanted then? >> so we are here to get your feedback and susan did not say yes or no, but the proposal that we have in front of you was for a retail opportunity for san franciscans who otherwise are priced out of participating at the port because of the intensive capitol out lay but if the intention is to broaden that, we are here to get your comments. >> i was actually going to say that i like the goal of reaching out to businesses that don't always have the necessary capital to come in and so we want to see a mix if we do out reach and include other lbes, and in the city, i do want to make sure that we have a mix of those that are working with some of the cbos because i think that part of the goal was to expand upon the work that the cbos are doing in terms of train and providing those
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resources to a lot of the local businesses. and so, i think that will be helpful if we could figure out a way for the selection panel to have guidelines on having a mix at the very least so that we do reach that goal of supporting some of the businesses that are in training and don't always have these opportunities to move into our facilities. >> how do we define the lbe? >> the city has a definition of local business enterprises. and it is, you know, the size of the business, which is usually a smaller business, and it is not a chain, and... >> it is usually based on gross revenue over a three year period with you have to be done and involved in san francisco are the two primary criteria and so we have to find out what the city what their definition is for retail. and i don't personally know it offhand, but, that is probably an area that we need to do a
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little more work around before we come back and make sure that we have a strong definition. >> okay. >> and then, are we doing this, and the lbe do they have to be certified? >> well, when that is your guidance. and i'm not sure that there are, or there is a list of lbe certified retail, vendors, since the city really typically, certifies lbes in the professional services space, rather than the retail space and so we have to check with the contract, monitoring division on that and we will recommend to you not certified but meet this following definition. >> you know more than i know. >> i think that we are tangling ourselves up with too narrow of a definition. >> i want to thank susan and her staff for coming up with this opportunity, i think that it is a wonderful opportunity and i think that we have had a long issue with minorities not being able to be involved on the water front. and so i think that this is a
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great opportunity to give an lbe a chance to do business with the port of san francisco. because that has been a long standing issue. so, we really want to thank you for coming up with this innovative idea. and i agree with my fellow commissioners that we may need to broeden it a little bit and need to stay in the scope of why we were doing it, and i want to thank baker for being here because she has done a phenomenal job and turning great restaurant into various districts throughout the city and so i am happy to see you on the panel. but thank you susan. >> and commissioner, woo ho to back up your question about a non-profit, the office space upstairs is still available. so if you do have any candidates, we would love to talk to them. >> i don't have any candidates. but i think that what i am trying to say is this is a
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pilot program and we have not done it before and if you start setting up too many guidelines and rules you box yourself in where a little bit if you let out the general guidance and then we will have to see where the interest is and we can sort of help to guide it along and i don't disagree with brandon what the objective is and sometimes you start to strap yourself in too quickly and i think that we need to be flexible and i think that the word is flexible. >> they do have it in the proposal here that if a lbe member, or part of the group does or decides to get out of somewhere along the line, and maybe before the lease ends, that lbe will be replaced by another lbe. >> correct. >> we want to preserve that space for those opportunities. >> because, in the past, like in the last, rfp, we had was
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for the old jelly space and it needs over a million dollars worth of work. and so that is a hurtle that a lot of our local small businesses can't take advantage of. ? so that is why because this was a turn key operation. we thought that it would be a good opportunity to open it up to the local smaller businesses. i would like to see it be the first of many. >> we have another one in mind, baby steps. >> i have one more comment and i have been involved with small business lending for a long time in my career and i think that everyone knows the success rate for small business regardless of the background is very, very difficult, and many, and so i just think that we, we need to say that we want a small business, but i think some experience and technical assistance from a cbo is not going to save somebody who can't survive and i think that it is really important that we don't think that the cbo is going to help to step in and
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help that business survive, it just does not work, i mean that is not the way that small businesses work, and i think that it is important that the size of the business, and the background of the business and the financial for the viability of the business and experience is important to consider and don't say that we have a cbo that is going to hold the hand and help that business and then we will have something that has a problem and we will have to start all over again. >> commissioner adams? >> first of all i want to thank you for your due diligence and i appreciate the wisdom and the will of my fellow commissioners and i personally like the idea and there is also an option here that you get two bites at the apple and i understand what commissioner woo ho is saying, but i think that this is a good idea and i think that, you know, if we can work at this and have some flexibility, but, at the end of the dai, ule of the commissioners will committed and so is the port to give someone an opportunity and to make sure that this
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succeeds, and as commissioner brandon says, that we would like to see more minorities and contractors have an opportunity and it is good that the big boys and the big girls always have an equal plan to fill but sometimes, the small girls and boys, they need a shot too. and so i think that this is a good start, we can look at it and learn from it and i think that this is something good and i appreciate the presentation and we can always tweak this thing and i think that this is a good start and you have my support, thank you. >> and i also wanted to thank you, susan and your team. and i think that this is a creative approach to some of the concerns that i think that all of us have expressed about making opportunities available, here at the port and this is i think, a wonderful way to reach out to our community members, and provide those opportunities. and i think that you have heard some of the comments here, but i would assume that the selection panel will take a lot of those concerns, and issues, under advisement as they go through the process. and i would imagine that if
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they look at the businesses to select that they will pick those ones that will just need that little extra step to be strong and viable and have that support. but, i really again, appreciate what you have brought forward and i think that this can serve as a bit of a model for the other departments in the city as well. >> thank you. >> and we will come back with some more information, and work with the cbos as we develop the rfp and bring it back to you in april. >> thank you. >> thank you. >> okay. >> next. >> item 8 a,request authorization to amend foreign trade zone no. 3 zone schedule 1 (tariff) containing rules, regulations, rates and charges to conform to new foreign-trade zones board regulations. (resolution no. 14-11). >> good afternoon, commissioners, commissioner and present katz and vice president adams and commissioners, my name is jim maloney and i want to give you a brief presentation on number three, and the zone schedule revision and ask that you approve the
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resolution in front of you. our zone schedule effectively our foreign trade zone tariffs which includes the rules, regulations, and definition and our rate schedule. the foreign strayed zone board which is an agency of the u.s. department of commerce, grants authority to local jurisdictions to operate the foreign trade zones in an effort to promote the business and economic development in the local regions. and as you are aware, the port received a grant of authority to operate foreign trades on number three, back in 1948. and this success and activity associated with the zone has ebbed and flowed over the years and when the zone, or when the port terminated the relationship with our existing operator back in 2009, who operated the foreign trades zone appears on 19 and 23, the port took over the direct operation and management of the zone ourselves at that point. and without an operator, the
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port it as i mentioned took on the direct marketing of the zone and due to the port's renewed focus and efforts, the refinery, and was our second zone site, and they took effect december of 2011. and part of that, the chevron refinery was the only site that we had up to 2009, and we are also in the process of activating the expediters international foreign trade sight in brisban and should be activated any time and we are in the process of activating the phillips 66 in rodeo as the foreign trade sites, the port taking over the management on a 2009 coincided with the ftz board's introduction of the innovative alternative site framework program which i will refer to as asf which took a bricks and mortar program,
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generally requiring activity to take place at a port facility, and to turn it into a virtual program, and that is more, readily portable to businesses throughout a multi, county, asf area. in 2010, the port applied to reorganize the port trade zone and we also had the same time, de designated pier's 19 and 23 and our application for a service area covering san francisco and san mateo county was approved in october of 2010, in the response to the requests from the businesses and economic development and organizations in north bay counties, we further apply to ad morin salano and most of sonoma and napa counties as well to the area and approved for this expansion by the foreign trade zone board in april of 2013. all along, port staff have


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